The Future of Work and Learning Brief
Issue #51 | February 2024

The Future of Work and Learning is… Simulated?

Employers have long complained that new grads from education programs aren’t ready for work. The pushback to employers from the education system is that they (employers) should do more upgrade training to prepare these entry-level workers for industry. Industry counters with the argument that the institutions themselves sell – intrinsically or explicitly – the notion that they prepare students for their future economic life.

In reality, few businesses expect completely job-ready candidates to emerge from a school program – but they do expect smaller gaps than currently exist.

Typically training by employers is some flavour of on-the-job-training (OJT) and the data suggests that the amount of OJT offered by employers has been declining. Two possible reasons may be that a) OJT means working on the customer’s product or service – which is risky for the employer, and b) organizations operating “lean” do not have the capacity to absorb this risk, or the additional staff required to effectively manage OJT upskilling.

The result of these real or perceived risks or costs has been a tendency to prefer hiring more experienced workers rather than new grads. For example, job postings for entry-level positions often ask for 5 years of experience! This leads to “poaching” workers from competitors, which is a zero-sum game that drives up labour costs and does nothing to increase the pool of younger workers in the industry.

Experience matters. The 70/20/10 model of skill development makes it clear that the smallest portion of a worker’s skills come from formal learning, followed by on-job learning, with the largest portion of someone’s value coming through experience in an industry context. Employers hire experience for the “long tails” – outlier experiences that are important but that don’t occur daily (hence the need for time to acquire them).

But there is a way to train employees, especially those in high-risk positions (rig workers for example), in critical skills including those considered long tail. Sectors including military, aviation and medicine see simulation as a reasonable investment. It offers a way to recreate close to life-like conditions during training without getting people hurt or killed, or damaging valuable equipment, or a customer’s product. Higher degrees of realism (high-fidelity) simulation is expensive but research shows that even low-fidelity simulation  (paper exercises, part task trainers, procedural trainers) can reap major skill benefits. Some studies indicate that the same neural connections are activated and reinforced during simple, low-fidelity simulations as would occur in more realistic and expensive simulation. The other advantage is speed – simulations can be designed to allow the acquisition of long tail experiences without taking years to learn at work (see diagram).

Many institutions and organizations are increasing their use of simulation, in some cases to replace live, hands-on practice:

The notion that learning occurs along a pathway of foundation knowledge followed by application in progressively more complex problems until some level of competency is acquired has been called into question. In practical terms, this tells us that learning by doing can lead to higher skills AND deeper knowledge, faster and without spending time in a traditional lecture hall. In fact, at Munster Technical University in Ireland, the new paradigm is that work isn’t just where knowledge is applied but a place where knowledge can be created.

All of this leads to exciting possibilities to bypass the traditional classroom environment using experiential learning (via simulation) to dramatically improve the level and quality of learning – faster.

The cost of quality, high-fidelity simulation is dropping exponentially. While it’s difficult to track costs as the technologies are evolving rapidly, the value is clear:

  • 43% reduction in lost time from injury since the introduction of virtual reality (VR) safety training in mining (Minesafe International Conference).
  • 100% of welding students who used VR training performed better on weld testing than those with traditional training (Iowa State University).
  • 82% of companies using augmented and virtual reality report benefits exceeding expectations (Capgemini).
  • 75% retention rate for VR training in schools, compared to lectures (5%), reading (10%), and audio-visual learning (20%) (National Education Association).
  • 8% average increase in memory recall using VR compared to desktop learning (University of Maryland).
  • 12% higher accuracy and 17% faster completion time in skilled labor training with VR versus instructional videos (Accenture).

And the National Library of Medicine VR cost analysis estimated that while virtual reality simulation training starts 43% more expensive per participant than live drills, it becomes 50% cheaper over three years as costs are spread across more trainees, while live drill costs remain fixed.

What does this mean for the future learner?

In the future, learners will be exposed to the “real world” via simulation early and often, learning the underlying theory through reflexive practice (why did X happen?), increasing their technical skills and knowledge but also their critical thinking and higher cognitive skills as a foundation part of their education.

Industry and employers aren’t off the hook – they need to be actively engaged to inform the types of simulations and scenarios necessary in this new paradigm. However, both the likelihood and quality of that engagement will be higher for the simple reason that it will make good economic sense for them to do so. Closer ties between the academy and the economy – and a smaller gap between the competencies that new grads have and the competencies needed  – will be the inevitable result.

Institutions (and educators) will need to learn and apply a new set of skills to take full advantage of the power of simulation in creating knowledge rather than just testing the application of learning. Teaching is already complex – it’s going to get even more complex.

The advantage is far richer learning experiences, with opportunities to experiment, make mistakes and gain valuable “real world” insights in a controlled, safe environment, resulting in higher levels of both knowledge and skills, more closely aligned with the requirements of the economy, delivered faster and more cost-effectively.

The Future of Work & Learning Brief is compiled by Jeff Griffiths and Stephany Laverty. Through this monthly brief, keep on top of developments in the workforce and how education and training are changing today to build the skills and competencies needed for the future.